A: Yes, IngramSpark collects sales tax in fourteen states, but due to legislative and procedural changes brought about by a United States Supreme Court ruling last year, Lightning Source will be collecting and reporting sales tax in 32 additional states within the United States, effective July 1, 2019.

Q: What is the deadline to have all tax documentation submitted to IngramSpark to avoid being charged sales tax on July 1, 2019?

A: All tax documents should be submitted through your IngramSpark account by May 15, 2019.

Q: In which states will IngramSpark be required to charge sales tax (if tax exemption documentation is not provided)?

A: IngramSpark will be required to charge sales tax for orders you have shipped to the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming. Scroll to the bottom of this article for a list of the states, their tax and contact information.

Q:Do I have to pay sales tax on Title Setup, Revision, or Market Access fees?

A: No. Sales tax applies primarily to the printing fees.

Q: What do I need to send to IngramSpark to be exempt from paying sales tax?

A: You will need to submit updated sales tax exemption documentation (see below for instructions). You may be exempt from paying sales tax if you are purchasing the products and services for resale or if you are an exempt entity (ex: a governmental, educational, charitable, or nonprofit organization).

A: If you claimed a sales tax exemption prior to April 1, 2018, you will need to resubmit your information to be eligible for tax exemption. Please follow the instructions further below to complete and submit your tax exemption.

Please follow the instructions below to verify that the entry date of your previously uploaded tax exemption documentation is April 1, 2018, or later.

1. Click the dropdown button in the account information section in the upper right-hand side of your account page and select “Paperwork.”

2. Any previously uploaded tax information will be displayed in the “My Paperwork” section of your account along with the date of upload.

Q: What happens if I do not submit updated sales tax documentation?

A: Without updated sales tax exemption documentation, sales tax will be collected on future publisher direct orders in the states where IngramSpark is obligated.

Q: Can I get a refund for any taxes paid before I submit my tax exemption documentation?

A: No. IngramSpark is obligated to collect taxes on all applicable items until tax exemption paperwork is on file. To avoid paying unnecessary taxes, make sure you submit your paperwork by May 15, 2019.

Q:Can I mail or fax a copy of my tax exemption certificate to the IngramSpark support team?

A: To ensure you have the correct paperwork for all states in which you are eligible, we highly recommend submitting your exemption documentation through your account on the IngramSpark website.

Q: If I have resale tax exemption documentation for one state, do I have to pay taxes in other states?

A: There are 38 states that accept “Home State” documentation as valid resale exemption documentation. This means that if you have submitted to IngramSpark the necessary paperwork for resale tax exemption, you may also be eligible for resale tax exemption in other states with the completion of a Reseller Affidavit. (See “What is a Reseller Affidavit?” for more information on Reseller Affidavits.) **Please note; the Reseller Affidavit is not a resale tax exemption document and must accompany resale tax exemption documentation for at least one state (forms provided on the website).

All states that have sales tax other than California, Connecticut, District of Columbia, Hawaii, Massachusetts, Maryland, Mississippi, and Tennessee allow a Home State registration to certify a sale for resale if documented properly.

For Foreign Publishers, “Foreign” meaning your country of residence is not in the United States, 37 states will allow a Foreign Reseller Exemption if documented properly. All states that have sales tax other than California, Connecticut, District of Columbia, Hawaii, Massachusetts, Maryland, Mississippi, New Mexico, and Tennessee allow a “Foreign” registration to certify a sale for resale if documented properly.

Four states—Illinois, New York, Pennsylvania, and Virginia—require their own state-issued form, in addition to the Reseller Affidavit, to be completed to document a “Home State” exemption. Forms for these states, as well as the Reseller Affidavit, can be found in the IngramSpark website.

Q:Why do I have to fill out forms for Illinois, New York, Pennsylvania, and Virginia if I’m not in any of those states?

A: These states require their own state-issued form, as well as the Reseller Affidavit, to be completed to document an exemption.

The following items must be completed on each applicable form:

ILLINOIS

Line 7 – Check part 1

Sign and date in Step 5

NEW YORK

Complete Part 2 (check Box D)

Provide state and registration numbers in the appropriate sections

PENNSYLVANIA

If applicable, check the following statement in Box 7: “The purchaser makes no taxable sales/not required to hold a PA Tax License. Property sold in the regular course of business.”

Sign and date at the bottom

VIRGINIA

Check Box 1

Provide registration number and the state where you are registered

Complete address

Date and sign

RESALE EXEMPTIONS

Q: How do I know if I’m eligible to claim an exemption based on resale?

A: With resale certificates, someone purchasing goods to resell may be exempt from paying sales tax on those items. The tax exemption applies only to the goods to be resold, not other items purchased for use by the business. To claim an exemption based on resale, you must provide a properly completed resale certificate for all states where you are licensed (have a sales tax license/permit for sales tax collection and reporting from that state as a reseller).

Q: What May Qualify for Sales Tax Exemption?

Exemption based on purchase for resale

Purchases by United States Government organizations

Purchases by States and/or political subdivisions thereof

Purchases by Non-profit for religious, charitable, or educational organization

Purchases by the United Nations and other international organizations

Q:What is the Reseller Affidavit?

A: The Reseller Affidavit is a legal document declaring the states in which you are registered for sales tax remittance. A Reseller Affidavit must be properly completed and submitted to IngramSpark for “Home State Exemption” rules to apply. The Reseller Affidavit is provided through the Lightning Source website and should be used to ensure that all the necessary information is provided.

For “Foreign” Publishers, the Reseller Affidavit is a legal document declaring that you are not registered nor required to be registered for sales tax in any states, but that you are a legal business operating in a foreign country and purchasing the products and services from IngramSpark for resale. A Reseller Affidavit must be properly completed and submitted to IngramSpark for “Foreign Reseller Resale Exemption” rules to apply. The Reseller Affidavit is provided through your account on the IngramSpark website and should be used to ensure that all necessary information is provided.

An online version is available through the IngramSPark website and will allow you to provide the necessary information, which is carried to in the appropriate resale certificate forms. If the Reseller Affidavit is not properly completed or if it is not submitted to IngramSpark, then only those states where you have provided a valid resale certificate will be exempt from sales tax.

Q: What if I am claiming an exemption based on my entity status (governmental, educational, charitable, or nonprofit organization)?

A: If you are claiming an exemption based on being an exempt entity, you will need to provide IngramSpark with the documentation issued to you by the state(s) documenting your exemption. Most states require an exempt organization to register in the state before an organization can claim a sales tax exemption.

Documentation required for sales tax exemption based on entity status varies by state. If you are an exempt entity, IngramSpark will review your submitted documentation and notify you if it is not accepted for tax exemption.